Deadline Missed to Earn “Non-Performing” Label from National Road Contractors | India News


NEW DELHI: Motorway construction agencies carrying out work financed by the central administration will declare contractors and concessionaires “non-performing” if they do not respect the construction stages fixed in the contract or if they are not poor performance, including failure to place people and machines on sites within the time specified.
The Ministry of Road Transport and Highways has published a list of conditions, including non-compliance with rectification and maintenance work, which will result in contractors being declared “non-performers”. Attaching the “non-performing” label can be a barrier to bidding for future projects.
According to a circular issued by the ministry, in the event of a minor failure of a structure or a highway resulting in a disaster, the contractor concerned must make the rectification at his expense. In addition, 5% of the contract value of the failed or defective work or 0.5% of the total project value, whichever is greater, will be imposed on these contractors.
In the event of a major failure of a structure or highway resulting in casualties, the contractor or concessionaire will be prevented from obtaining work for up to one year or until completion of the work. Road authorities will also impose fines.


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